J.P. Morgan Reiterates OW Rating On HGSI

J.P. Morgan is reiterating its Overweight rating on shares of Human Genome Sciences Inc. (NASDAQ: HGSI) “following last night's announcement that the FDA approved Benlysta for the treatment of lupus.”

“This outcome was widely expected, but we nevertheless view it as a transformative event,” J.P. Morgan writes. “HGSI now has an approved biologic with multi-billion-dollar peak sales potential (50% global economics) that could possibly enjoy a prolonged period of monopoly-like status.

“We believe that this is a unique proposition that greatly enhances the scarcity value of HGSI and should help shares break out of their recent trading range.”

Human Genome Sciences closed Wednesday at $25.68.